Budget 2014: corporation tax to fall to 20%

The coalition has cut corporation tax from 23% to 21% with the rate falling to 20% by 2015.

The move, which provides tax relief for companies whose profits are higher than £1.5 million, aims to incentivise overseas investors to come to the UK, and create jobs.

'When we came to power this was one of the least competitive regimes in the world, now it is one of the most competitive,' Osborne said, noting that corporation tax was 28% when the coalition came to power.

High street businesses will receive £1,000 tax relief, while business rates will be discounted for the next three years.

We use cookies to give you the best experience on our website. You can continue to use the website and we'll assume that you are happy to receive cookies. If you would like to, you can find out more about cookies and managing them at any time here. This site is for Professional Investors only, please read our Risk Disclosure Notice for Citywire’s general investment warnings

We use cookies to improve your experience. By your continued use of this site you accept such use. To change your settings please see our policy.